Judge tosses Arkansas marijuana dispensary applicant’s suit over scoring

March 24, 2023 · MJ Biz Daily

A federal judge in Arkansas dismissed several claims by a medical marijuana dispensary applicant, including tortious interference and racial discrimination during the state’s license-evaluation process.

According to Law360, U.S. District Judge James Moody Jr. ruled that tortious interference doesn’t apply to the claim made by Absolute Essence because it’s still an applicant and doesn’t have any property or business rights.

Absolute Essence’s suit in February 2022 alleged that the company that state regulators hired to score applications, Public Consulting Group Holdings and affiliate Veracious Solutions, was discriminatory and chose to deny the state’s limited number of retail licenses to minority-owned business applications.

The licensing process was halted as a result of the lawsuit, which was sent to federal court last April.

That month, Boston-based Public Consulting Group moved to have the complaints against it dismissed because Absolute Essence didn’t exist until two years after the application was scored.

In May, Veracious Compliance Solutions of Henderson, Nevada, moved to have the case dismissed because it didn’t have final say on the process, plus state regulators had to approve the application scores.

The judge agreed, noting the discrimination claims were dismissed because Absolute Essence has neither property nor a contract, which is required for a claim under the Arkansas Civil Rights Act.

According to Law360, the judge also dismissed:

  • An additional claim of fraud.
  • A claim under the Equal Protection Clause.
  • A civil conspiracy claim.

(Full Story)

In categories:Dispensaries Legal
Tags:
Next Post

New York’s Long Island opts out of marijuana retail, limiting options for store operators

When New York regulators announced plans to double recreational marijuana retail licenses to 300 for social equity applicants, local cannabis operators and other industry advocates applauded the news. But behind the scenes, concerns were mounting over the challenge of finding affordable cannabis…
Read
Previous Post

New York Gov. Proposes Crackdown on Unlawful Cannabis Shops

New York Gov. Kathy Hochul (D) is proposing legislation to crack down on unlicensed cannabis storefronts in the state, including fines of up to $10,000 per day for unlawful operations. The legislation would also give additional enforcement power to the Office of…
Read
Random Post

Connecting Cannabis Brands and Consumers: The Future of Brand Discovery

THE CANNABIS INDUSTRY has been rapidly expanding in recent years, with legal status and widespread acceptance paving the way for significant growth and diversification. As the industry evolves, the role of technology in connecting cannabis brands directly with consumers is becoming increasingly important.…
Read
Random Post

How to capitalize on consumer data to personalize marijuana marketing

When it comes to marijuana, men and women approach consumption differently. Men are more likely to go on binges while women tend to avoid substance-use behaviors, for example. A 2020 Canadian study also found that men pursue opportunities for intimate…
Read
Random Post

New Mexico Revokes Retail Permit for Dispensary Selling California Cannabis

New Mexico authorities revoked the business permit of Albuquerque cannabis dispensary Paradise Distro for selling marijuana shipped in from California, in violation of both state and federal law. Paradise Distro was found to be selling cannabis products with California-made markings,…
Read
Random Post

Ahead Of Oral Arguments, Safe Drug Consumption Site Lawyers Call Out DOJ’s ‘Irreconcilable’ Legal Positions

With oral arguments set for Monday in a federal court case over a proposed Philadelphia safe drug consumption site, counsel for the would-be facility sent a letter to the judge in the case on Thursday calling out the Department of…
Read